Bella Ciccolo, ’26

Staff Writer

“Mom!” I shout from another room, “I have no money, can I please have $20 so I can get food with my friends?”

I have asked my mom for money a thousand times. And every time I am met with the same frustrated reply, “Where is your emergency fund, Bella?” It’s a question which has taught me about the priceless skill of budgeting. Over the years, I have realized that budgeting is not merely about limiting spending, but about being in control of my financial future and independence. At a young age, I wanted independence and money. I would operate lemonade stands, sell homemade greeting cards, and bargain for a bigger allowance. However, these earnings were spent carelessly on candy bars and toys. Now, at 17, I have two jobs, at Starland and Montilio’s Bakery, and am continuously learning how to better manage money. By no means am I flawless. I still indulge in shopping sprees that I regret, but as I enter the real world of money, I can no longer spend it irresponsibly. No longer am I playing Monopoly like I was at 7 years old. There are consequences to my spending, and the looming threat of debt. There is no “Get Out of Jail Free” card to protect me. Financial management has always been the way my mom, who owns her own business, has taught me to become self-reliant. Budgeting is more than just money; it is a tool that empowers one to take control of their finances by setting goals for future financial security and stability.

​​Where do I even begin? Budgeting might seem overwhelming at first so it is important to break it down into more manageable pieces. First, assess income and expenses. It is important to refer to the net income, which is the income after tax deduction. Review how the money from the net income is being transferred, focusing on specific debits and credits. In accounting terms, debits are assets that are deposited into an account. Debits include salaries from a primary job or a side hustle, or an investment. Credits, conversely, are a decrease of assets or withdrawal of money from an account. These are also known as expenses. While there are many types of credits to track, identify repeated expenses. Recognizing these habits is the first step to managing a budget effectively.

Once expenses and shopping habits have been identified, the next step is to prioritize them. Sacrifice is required to maintain your budgetary limit. Distinguish wants and needs, as well as purchase frequency. Although there are a lot of enjoyable things to spend money on, bills need to be paid. Electricity, phone, water, and heating are all expenses you must pay once you rent an apartment. After college, you may have student loan payments. These bills are important to prioritize as a necessity. To budget for these essentials, identify other types of spending habits. Review recurring expenses such as a gym membership. If the membership is not frequently used, it may be wiser to cancel it. Likewise, if you do not listen to music regularly, a subscription to Spotify Premium may not be a smart financial decision. You can also choose what to spend your money on. Some might love a daily Starbucks but also want to go on vacation. In order to choose, determine the value of every expense. Is buying a seven dollar drink every morning a better use of money than traveling to Italy? For some the answer is yes, and for others it is no. Both perspectives are valid, but it is key to be aware of how money is spent from a wallet. 

Awareness comes with honesty towards one’s self, and is the final key to a successful budget. This involves making time to review the budget on a regular basis. Budgeting is a continuous process, and is necessary to revisit. Has the Starbucks trip continued? Are the student  loans paid? If the answers are disappointing, modify the budget to make it more achievable. Rather than visiting Starbucks each day, visit once a week. Instead of keeping your student loans in the checking account, place the money into savings. However, original goals can be overly optimistic and it is necessary to be realistic. Take responsibility for failures, admit to mistakes and learn from what could have been done. But it is important to be gracious and flexible with oneself. The rewarding feeling of accomplishment will be worth it. An individual can become free of student loans or become empowered to purchase a new car. A budget is a living document that adjusts to one’s lifestyle and changing priorities. And above all, budgeting is a skill that improves with practice. 

A skill is something one learns or develops over time through practice. I realize that this is easier said than done. Take my own experience as an example. I am not perfect at budgeting, nor do I claim to be, but I am constantly working to improve my money management. Developing this skill has tremendously impacted my spending since I was seven. As with any skill, with more practice there is more improvement. Think back to learning division or how to drive. It was challenging at first! But with determination and practice, the skill was built. Similarly, managing money will also become easy over time through categorization, sacrifices, and accountability. Teenagers, students, those living alone, or struggling to save for their future, can all benefit from this practice. The average American adult has $66,772 in debt, and 77 percent of households carry some type of debt. Budgeting is a proactive step that will lead to financial independence and security. By starting today, anyone can take control of their future, and create a life free of financial instability.